Global Fastener News

John Wolz

Fastenal Bullish on 2000 � With 1999 sales and earnings rising more than 20%, Fastenal Company expressed optimism that it is poised for a strong sales year.
�This is a sharp contrast to the market environment we were experiencing just 12 months ago,� notes a company year-end statement.
�Going into 2000, the negative impacts of the Asian currency crisis of 1997 appear to be behind us, and the growth initiatives of 1999 should begin to impact our branch results.�
Net sales for the year ended December 31, 1999, totaled $609,186,000, an increase of 21.1% over the $503 million in sales for 1998. Net earnings grew 23.6% to $65,455,000.
Fourth quarter net sales increased 20.7%, and net earnings grew 26.9%.
Fastenal opened 21 sites in the fourth quarter, bringing the total number to 809 � 750 as traditional Fastenal stores and 59 as satellite stores.
There were 3,670 site employees at the end of 1999, an increase of 5.7% during the fourth quarter and 21.3% from the end of 1998.
Fastenal completed a project of replacing point-of-sale software and hardware in all branches.
The company pronounced itself �very pleased with the progress made to date� on sales over the Internet, which began in July 1999. Fastenal believes �there is tremendous potential for day-to-day efficiency benefits both for our customers and for our business that are yet to be realized.�
Fastenal acquired a 400 sq ft facility in Indianapolis during the fourth quarter, which is larger than current distribution needs but was �purchased at a very competitive price, and the extra space will allow us to explore the possibility of providing logistics services to other firms.�
Fastenal�s manufacturing division is completing a 50,000 sq ft expansion of its Winona, MN, plant and plans to begin using it during the first quarter of 2000.

TransTechnology Fastener Sales Up 61% � TransTechnology Corporation�s specialty fastener products segment reported operating income was up 74% on 61% higher sales in the company�s third fiscal quarter ended December 26, 1999.
However, companywide net income for the fiscal third quarter dropped 21% to $2,865,000. Revenues increased 48% to $85,872,000, primarily due to acquisitions.
The increase was primarily from the August 1999 acquisition of the Tinnerman fastener business and the July 1999 acquisition of the Ellison retaining ring business.
TransTechnology�s assembly fastener, hose clamp and retaining ring businesses in the U.S. and UK reported higher sales and profits in the just-finished quarter over the same period a year ago. The retaining ring businesses in Germany and Brazil reported lower sales and profits, �primarily due to their respective continuing weak local economies,� according to a company statement. Cold headed and specialty machined parts reported lower operating profit due to marginally lower sales and a change in product mix. Aerospace rivet sales were down 23% due to the loss of a major customer.
Liberty Corner, NJ-based TransTechnology manufactures specialty fasteners and aerospace products. TransTechnology has 2,500 employees at 14 manufacturing facilities in North America, England, Germany and Brazil.
CEO Michael Berthelot said he is pleased �with the progress being made in integrating the Tinnerman and Palnut operations into a single entity operating as TransTechnology Engineered Components. The opening last month of our Sales & Advanced Engineering Center in Southfield, MI, is a first step toward fully integrated marketing operations in our fastener businesses.�
The second step is installing a new MIS system for all four TTEC facilities to reduce operating costs.
�In England the consolidation of our Anderton and Ellison facilities into a single operation called TransTechnology [GB] is also proceeding on plan and within budget. Improved financial results from this consolidation so far are minimal; however, the third quarter operating income margin of the UK facilities has improved by almost 50%, and most of the benefits of the consolidation remain to be realized,� Berthelot suggested.

Eastern Income Up 20% � The Eastern Company�s CEO anticipates growth in its core product lines and acquisitions and alliances.
Leonard Leganza said when final figures are announced Eastern�s 1999 sales will be up about 6% from 1998 to approximately $75 million. Net income will be up about 20% to $6.5 million.
In addition to expanding established business, Leganza said Eastern will be �searching out acquisitions and other alliances in certain targeted markets.
Naugatuck, CT-based Eastern manufactures locks, latches, fasteners and other security hardware at seven North American and Pacific Rim plants.

Penn Engineering Sets Records � Penn Engineering & Manufacturing Corp. announced it set annual sales and income records in 1999.
For the 12 months ended December 31, 1999, net income was $17,089,800, compared with $16,579,566 for 1998. Net sales rose from $179 million for 1998 to $198,073,717 for 1999.
Fastener operations sales rose from $36.5 million for 1998 to $47.4 million for 1999. Income jumped from $3.9 million the previous year to $5.5 million for 1999.
�By all measurements � sales, operating income, net income, units shipped and across both of our lines of business � we had a record year,� CEO Kenneth Swanstrom declared.
The acquisition of R.C. Dudek reduced fourth quarter earnings per share, Swanstrom acknowledged. �We expect the R.C. Dudek acquisition will positively impact our financial results in the year 2000.�
Danboro, PA-based Penn manufactures self-clinching fasteners for the computer, telecommunications, electronics and automotive industries, and high-performance magnetic dc motors used in electronics, medical and manufacturing applications.

Textron Continues Quarterly Growth � Surpassing 10 years of continuous quarter-over-year-ago-quarter earnings growth, Textron Inc. reported fourth quarter 1999 earnings per share from continuing operations were up 51% over 1998.
Income from continuing operations in 1999 reached $623 million, up 41% from 1998. Revenues increased a record 20% to $11.6 billion.
Textron Fastening Systems revenues increased for the fourth quarter and the year, reflecting the contribution of Flexalloy and InteSys acquisitions. The gains were partially offset by lower revenues in Europe.
The acquisitions of Ring Screw Works, Sukosim and Peiner also increased annual revenues.
All of the Textron divisions combined acquired 19 companies during 1999, which are expected to add $1.6 billion to 2000 revenues.
Providence, RI-based Textron has businesses in aircraft, automotive, industrial and finance. Textron has 68,000 employees and manufacturing facilities in 27 countries.

Black & Decker Sets Earnings Record � Black & Decker Corporation earned a record $300.3 million for 1999. In 1998 the company reported a net loss due to a write-off of goodwill and restructuring changes.
Sales for 1999 rose 9% on retained businesses, but Black & Decker�s reported sales edged down 1% to $4.52 billion due to divested businesses and currency effects.
Fastening & Assembly Systems �had another excellent fourth quarter and year,� CEO Nolan Archibald observed. �Sales were up 4% for the quarter and 7% for the full year, with significant growth in specialty fastening systems. Operating profits were up an impressive 11% for the quarter and 10% for the year, as productivity initiatives continued in this business.�
�We are extremely pleased with Black & Decker�s performance this past year, which resulted in record earnings and clearly indicates that the strategic repositioning we undertook in 1998 has been successful,� Archibald said. �Sales grew above our targeted range for the fourth quarter and the full year, led by the excellent results from our power tools & accessories group.
Towson, MD-based Black & Decker manufactures power tools, hardware and home improvement products.

Sales Up, Income Down at Precision Castparts � Precision Castparts Corp. sales for fiscal year 2000�s third quarter, which ended December 26, 1999, grew 12% to $404.7 million. Net income plummeted from $25.7 million to $12.7 million.
Acquisition of the Wyman-Gordon businesses contributed $55 million of the total sales.
The industrial products segment, which includes fastener tooling makers Reed-Rico and Astro Punch, �continues to be beset by a depressed machine tool market worldwide and pricing pressures on its header and threader tool product lines,� according to a company statement. The lower net income �is directly related to the lower production volumes.�
Portland, OR-based Precision Castparts manufactures metal components and products, structural investment castings, airfoil castings and forged components used in jet aircraft engines, industrial gas turbines, fluid management, pulp and paper, tungsten carbide and other metal products.

Danaher Earnings Up 23% � Danaher Corporation reported net earnings rose 23% to $271.4 million on a 5% sales gain to $3.2 billion.
Washington, DC-based Danaher manufactures tools and components and process/environmental controls.